History: Domino's Pizza Is
History: Domino's Pizza Is
History: Domino's Pizza Is
Domino's Pizza is an American restaurant chain and international franchise pizza delivery corporation headquartered at the Domino Farms Office Park (the campus being owned by Domino's Pizza co-founder Tom Monaghan) in Ann Arbor Charter Township, Michigan, United States, near Ann Arbor, Michigan.Founded in 1960, Domino's is the second-largest pizza chain in the United States (after Pizza Hut)and the largest worldwide, with more than 10,000 corporate and franchised storesin 70 countries.Domino's Pizza was sold to Bain Capital in 1998 and went public in 2004.
Franchise Model
Outside of the U.S., Dominos used a master franchisee model that differed significantly from the U.S. franchise system. Under this system, a master franchisee was granted exclusive ownership rights over the stores and the supply chain system for a country, region, or number of countries.
Operations Strategy
Dominosis one the leading pizza delivery companies globally. The Companyhas a unique business and operationmodel and is a pioneering the fast food industry. Since 1960, Dominos Pizzahassuccessfully expandedfrom threeoutlets in the USto 9,350 stores operating in seventycountries. Dominosoperation inthe UK and overseas usesthe franchise model. The parent company, Dominos Pizza LLC is headquarteredin Michigan, USA. It maintains overall control on the sourcing and supplying of raw materials to the master franchisesand enforcesquality of the service and products sold.
The Dominos Corporate Vision statement focuses on thefollowingkey areas Being better than the competition Ensuring a quality product. Providing excellentservice. Creating lasting relationships with its employees andthe communities within which it operates. A clear corporatevision ensures that the company anditsfranchises can work towards meeting common goals thereby increasing its business in a potentially virtuous cycle.
Marketing Strategy
To reach their consumers, they follow holistic marketing strategy by leveraging both the power of the media and direct consumer-connect. JFL is positioned as a mass brand with topof-the-mind consumer recall. JFL is continually enhancing its consumer engagement and building greater brand loyalty through Television, Digital Marketing and tactical Below the Line (BTL) activities and local engagement initiatives. Digital Marketing Dominos Pizza Dominos Pizza in India today is one of the most engaging brands on Facebook, the 19th largest fan page across categories. Their pioneering digital initiatives across Online and Mobile Ordering platforms, they have enhanced their Consumer Service. Their feedback process on single Number (68886888) went Live for our consumers during the year. With a turnaround time (TAT) of eight hours on Consumer complaint redressal, they have mastered the art of delighting every consumer. Their Consumer Satisfaction Index
initiative has also proved to be an effective platform for monitoring consumer feedback.
Research Methodology
Objectives of the Study: To understand the value proposition offered by Dominos from customers perspective To offer recommendations to Dominos based on customer responses To do customer value analysis which includes indentifying major attributes that customers value in a fast food chain restaurant, assessing quality of different attributes To know about the awareness of people towards
Research design: The task of defining research problem in the preparation of research project is known as research design. It is an arrangement of conditions for collection and analysis of data in a manner that aims to combine relevance to research purpose with economy in procedure. Descriptive Research A research design in which major emphasis is on determining the frequency with which something occurs. The focus of descriptive research is to provide an accurate description for something that is occurring. Primary Data The Primary Data was collected through questionnaires. They were filled using scheduled method of data collection by the researcher. Primary data is the data which has been collected for the first time. Primary data being fresh from the fields of investigation is very often referred to as raw data. In collection of primary data, a good deal of time, money and energy are required. Secondary Data Secondary data is the data that has already been collected and examined earlier by other investigators. Secondary data can either be published or unpublished data. Secondary data includes articles from: Company documents Reports and Journals Books, magazines and newspapers
Sources of Data Collection: Following sources of data have been used for the purpose of this research:
Primary Data:
Questionnaire:
Domino's Survey
Domino's Survey * Required 1. Do you eat outside food? * If no, go to question no.11 Yes No 2. How often do you eat outside food ? Once in every 3 days Once in every 7days Once in every 15 days Once in every month Once in every 3 months 3. On what parametersdo you decide where to eat?
Agree
Neutral
Disagree
Strongly Disagree
4. When you go outside, what would you like to eat? Junk food Healthy food 5. Have you ever tried Domino's ? * If No, go to question no. 8 Yes No 6. Which Domini's service do you usually avail? Domino's Outlet Home Delivery Both
7. On the basis of your of satisfaction level, rate your experience on the following parameters: *
Very Good Price Food Quality Taste Variety Ambience Hygiene Service Over all experience
Good
Neutral
Bad
Very Bad
Not applicable
8. How many times do you eat Domino's food ? * Once in every 3 days Once in every 7 days Once in every 15 days Once every month Once every 3 months Once a year 9. Do you intend to visit Domino's in future? Yes No May be 10. Would you like Domino's to include healthy food options in their menu ? Yes No 11. Indicate which healthy food items you would like Domino's to include in the menu? Salads Baked Pasta Brown Bread Sandwiches Juices
Submit
Secondary Data:
Company documents Books, magazines and newspapers
Limitations of the Study: Since the road to improvement is never ending, so this study also suffers from certain limitations. Some of them are as follows: Scope of the project is limited in the sense that only Dominos has been taken for consumer research Questionnaire method involves some uncertainty of responses. Co-operation on part of informants, in some cases, was difficult to presume. It is possible that information provided by the informants may be incorrect
SWOT Analysis
Strength Worldwide presence Extremely strong brand image and high brand loyalty. Very strong network with its franchisees High number of products Strong brand equity supported by heavy advertising & marketing campaigns. Efficient and effective supply chain management enables it maintain its goodwill and promises Online & mobile ordering. Franchisees are diversified and able to increase their market share and encourage sales. 30-minute home delivery guarantee.
Weakness High fat and high calorie food not good for health conscious people Franchise management. High staff turnover due to lack of training and development
Opportunity Growing presence in emerging markets, particularly in India, China. Home delivery service. Sales from iPhone applications. Introduction of new flavor additives and pizza toppings that are region specific can be a good stride for Dominos. The distribution network should be further strengthened so as to ensure market penetration in the existing markets at maximum optimum levels. Niche groups- Low Carbohydrate.
Threats Changing consumer habits towards healthier food choices. Intensive competition from a fragmented number of small competitors. Increase of food and labor costs. Increase of substitute products.
Side Order
VEG PASTA ITALIANO WHITE VEG PASTA ITALIANO RED NON VEG PASTA ITALIANO WHITE NON VEG PASTA ITALIANO RED
Choice of Crust Cheese Burst Classic Hand Tossed Wheat Thin Crust Fresh Pan Pizza
CHICKEN DELIGHTS MORE CHICKEN WINGS CHICKEN KICKERS SPICY BAKED CHICKEN
TACO INDIANA VEG TACO INDIANA CHICKEN CALZONE POCKETS VEG CALZONE POCKETS NON VEG LEBANESE ROLLS NON VEG LEBANESE ROLLS VEG
MIXED DOUBLES TWO VEG & TWO NON VEG DOUBLE TOPPING PIZZAS
Realibility Testing
Cronbach Value-Cronbach's \alpha (alpha) is a coefficient of internal consistency. It is commonly used as an estimate of the reliability of a psychometric test for a sample of examinees. Observation Since cronbach value > 0.6 for our data, therefore our data is reliable and we can move forward with our analysis.
Reliability Statistics Cronbach's Alpha Based on Standardized Items N of Items .655 12
Relevance of the Study The large-scale consumption of junk foods has created a public health crisis in many countries as more and more people are affected by obesity-related diseases such as diabetes, high blood pressure and heart ailments. The financial and social costs of these health problems are huge. The key emerging health concerns amongst Indians include diseases of the heart and digestive system, obesity, bone and joint pain, depression and anxiety, lack of energy and stamina and sleeplessness. While some of these are being aggressively addressed by manufacturers, there are some others which still offer a scope for product development. The growing awareness amongst Indian consumers regarding several ingredients and their associated health benefits is making them more inclined to use nutritional information very often to make product choices. Hence there is a demand for food and beverages with health claims, and Indians are making a conscious attempt to include them in their diet. Health food and drinks should be made available in convenient package formats to appeal to the changing consumption patterns. In a crowded marketplace with several products having health claims, sustained purchase and consumption is driven by product packaging, size and formats aimed at providing convenience of usage to the consumers. Thus Dominos has a vast opportunity to understand the fast-changing health attitudes of consumers and adopt to it with more innovative and healthier food options at good price. These benefits being added to the consumer value chain will provide Dominos with a new set of health conscious consumers added to its portfolio as well.
The Sampling Plan 1. Target Population : People eating outside food 2. Sampling Frame : People eating Domino's food Sampling Unit : Individual customers Element : Same as sampling unit
3. Sampling Technique : Probability Sampling Reasons for choosing Probability Sampling: Research type is Exploratory, Variability in population is limited in terms of eating habits and age group Simple Random Sampling
4. Sampling Size: Number of Respondents : Geographic Extent : Whole of India (Respondents belong to various parts of the country) Time : February and March 2014
Scaling Technique Likert scaling is being used in the survey questions. It is a bipolar scaling method measuring either positive or negative response to a statement. A typical test item in a Likert scale is a statement, the respondent is asked to indicate their degree of agreement with the statement. Traditionally a five-point or a seven point scale is used with neutral include in between. Some of the Likert scale examples are shown below which have been used in the Questionnaire designed
Strongly Agree Agree Neutral Disagree Strongly Disagree
Very Good
Good
Neutral
Bad
Very Bad
Rationale for using Likert Scale: After the questionnaire is completed, each item may be analyzed separately or item responses may be summed to create a score for a group of items. Hence, Likert scales are often called summative scales is being used in our survey to create a score on factors which influence consumers to like Dominos.
Possible assumptions/ Hypothesis drawn to be studied Ho (Null Hypothesis) : Customers would like Domino's to include healthy food in their menu H1 (Alternate Hypothesis) : Customers would NOT like Domino's to include healthy food in their menu H0: U=X H1: UX Z=X-U/
30 1 31
Reliability Statistics Cronbach's Alpha .614 Cronbach's Alpha Based on Standardized Items N of Items .655 12
Item Statistics Mean Experience_based_on_Price Experience_based_on_FoodQuality 3.4000 3.7000 Experience_based_on_taste Experience_based_on_variety 3.6000 Experience_based_on_ambience 3.2667 Experience_based_on_hygiene 3.7333 Experience_based_on_service 3.6000 overallExperince parameters_to_decide_price parameters_to_decide_taste parameters_to_decide_healthiness 3.4667 parameters_to_decide_ambience 3.6667 1.12444 30 1.19578 30 3.6000 4.0333 4.7000 .96847 .62146 .76489 .46609 30 30 30 30 .73968 30 .78492 30 .85501 30 3.7667 Std. Deviation 1.03724 .74971 .77385 N 30 30 30